Harare, (New Ziana) – The International Monetary Fund (IMF) says sustained implementation of Zimbabwe’s Staff-Monitored Programme (SMP) will strengthen the country’s engagement with creditors and development partners.
The IMF said it had completed the second review of Zimbabwe’s 10-month SMP, describing the development as further evidence of progress in the country’s efforts to consolidate macroeconomic stability and improve its policy implementation record.
“Effective implementation will be important to address persistent bottlenecks, improve execution of priority programs, and ensure that macroeconomic stabilization delivers tangible benefits to vulnerable groups.”
The Fund said continued implementation of the programme would also support Zimbabwe’s broader efforts to restore normal relations with the international community.
“The SMP is helping strengthen Zimbabwe’s track record and support its broader re-engagement agenda. Continued implementation of the remaining program commitments, together with further progress in reconciling debt data and developing a credible and fully financed approach to arrears clearance and debt resolution, will help build further momentum in discussions with creditors and development partners,” the IMF said.
According to the IMF, programme implementation through the end of June 2026 was strong, with Zimbabwe meeting all quantitative targets and structural benchmarks. All indicative targets were also achieved, apart from the floor on protected social and priority spending.
The completion of the review, the IMF said, demonstrates continued progress in strengthening macroeconomic stability and building a track record of policy implementation that supports efforts towards arrears clearance, debt resolution and re-engagement with the international community.
The Fund, however, stressed that maintaining fiscal and monetary discipline will remain critical. It also called for improvements in budget execution and fiscal governance, timely delivery of protected social spending, and continued reforms to the monetary and foreign exchange markets.
Zimbabwe’s economy continued to expand during the first half of 2026, while annual ZiG inflation remained in the low single digits, reaching 3.7 percent in September.
“The exchange rate remained broadly stable, and the external position benefited from strong mineral exports, favourable commodity prices, and resilient remittance inflows. Fiscal revenue also exceeded expectations, contributing to a stronger-than-programmed primary balance.
“The economic outlook for 2026 remains favourable. Real GDP growth is projected at 5 percent, inflation is expected to remain in single digits, and the current account is projected to remain in surplus. Growth is projected to slow to 3.5 percent in 2027, reflecting the anticipated effects of an El Niño-related drought on agricultural production, before recovering in 2028. Risks remain tilted to the downside, particularly from a more severe drought and renewed commodity and energy price pressures,” the IMF said.
The IMF said governance reforms and tighter oversight of the Mutapa Investment Fund (MIF) and other state-owned enterprises would be essential to managing fiscal risks and maintaining investor and public confidence.
“Continued adherence to borrowing controls for Mutapa and its subsidiaries, publication of audited financial statements, and more systematic monitoring and disclosure of state-owned enterprise financial health will help limit the build-up of direct and contingent liabilities. Finalizing and publishing the anti-corruption strategy, supported by a clear policy matrix, will further strengthen economic governance and accountability,” it said.
New Ziana
